Notebook: Press on with resources tax

To his credit, Kevin Rudd dealt with the economic crisis well. As the International Monetary Fund has noted, Australian “economic activity was . . . shielded by the authorities’ timely and significant policy response".

But prime ministers need to be leaders, not technocrats, and Mr Rudd failed to offer direction for Australia. He was elected on a pledge to fight climate change. But, in April, the prime minister ditched his pet cap-and-trade system. Labor’s support suffered as voters questioned what he was for.

Mr Rudd’s final error was to announce a tax on mining companies’ profits without consulting the targets of the levy. Those companies, Australia’s most powerful lobby, fought back.

A more flexible prime minister might have deflected their assault by agreeing to consult with them.

But Mr Rudd was no such leader.

The new Prime Minister, Julia Gillard, could be. It would be wise for her to meet the miners and to make a few reasonable concessions (such as on the discount rate that the tax uses). But Ms Gillard should press ahead with the move.

The lesson of Mr Rudd’s demise is that leading Australia is tough. It is not that Australia does not have the right to a share of the profits from the exploitation of its resources.